Crawford extends, expands senior secured revolver, cuts pricing

By Marisa Wong

Madison, Wis., Nov. 26 - Crawford & Co. entered into a third amendment to its credit agreement dated Dec. 8, 2011 to increase total commitments to $400 million from $325 million, according to an 8-K filing with the Securities and Exchange Commission.

The increase does not affect the company's ability to exercise its option to further increase revolving loan commitments under the credit agreement by up to $100 million, the filing noted.

The amendment, which was completed on Nov. 25, also extends the maturity date of the facility to Nov. 25, 2018 from Dec. 8, 2016.

In addition, the applicable margin for interest rates was reduced by 25 basis points and the commitment fee was reduced by 5 bps.

The amendment allows the company to undertake a one-time stock repurchase in an amount of up to $25 million prior to Dec. 31, 2015 and increases the leverage ratio to 3.25 to 1 from 3 to 1.

"We are very pleased to amend our revolving credit facility. The amendment provides us with additional flexibility to pursue our long-term strategic plans," Crawford president and chief executive officer Jeffrey T. Bowman said in a press release.

"The amendment also reduces our borrowing costs, extends the maturity of our credit facility to five years and significantly improves our access to capital due to its increased size."

Wells Fargo Securities and Bank of America Merrill Lynch are the joint lead arrangers and joint lead bookrunners for the senior secured facility. Other participating banks include RBS Citizens as documentation agent, Northern Trust, HSBC Bank USA, Royal Bank of Canada, Fifth Third Bank and SunTrust Bank.

Based in Atlanta, Crawford provides claims management solutions to the risk management and insurance industry as well as self-insured entities.

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